Mortgage Debt Solutions For The Unemployed

A big factor in the foreclosure crisis has been the unemployed and  underemployed.  Individuals in both of these categories face additional challenges with their mortgage debts than the traditional borrower. With limited options and the unlikelihood of securing a loan modification, many borrowers struggling in the job market have few places to turn. Luckily, one program is available as part of the government’s Making Home Affordable initiative that can offer help.

A Possible Solution

The Home Affordable Unemployment Program (HAUP) was created as part of a larger mortgage debt program offered by the government. HAUP helps homeowners secure forbearance agreements with lenders that may be able to temporarily lower payments or suspend payments for a specified period of time. For someone experiencing an unexpected lack or reduction in income, the HAUP can provide financial relief without the risk of foreclosure while they work to secure more income.

The HAUP may be an option for anyone who (a) is eligible for unemployment benefits, (b) hasn’t previously received a forbearance plan under the program and (c) has a  mortgage payment exceeding 31% of their gross monthly income. The program is only applicable for those looking for help on a primary residence, not rental or investment property, and applies prior to missing three payments.